Wired: Your new credo these days is “Create more value than you capture.” What does that mean?
Tim O’Reilly: Everybody wants to foster entrepreneurship, but we have to think about the preconditions for entrepreneurship. You grow great crops in great soil. And the soil is the commons. Increasingly, we have monopolistic companies that try to take as much as they can for themselves. And we have a patent and copyright regime that makes sure that nothing goes back into the commons unless by an extraordinary act of generosity. This is not fertile soil for innovation.
So many technologies start out with a burst of idealism, democratization, and opportunity, and over time they close down and become less friendly to entrepreneurship, to innovation, to new ideas. Over time the companies that become dominant take more out of the ecosystem than they put back in. We saw this happen with Microsoft. It started out with a big vision: How do we get a PC on every desk and in every home? It was profoundly democratizing. But when Microsoft got on top, it slowly started choking off the pathways to success for everybody else. It stopped creating more value than it captured.
Wired: Tim O’Reilly’s Key to Creating the Next Big Thing